Do you factor in RSUs when it comes to housing affordability and budgeting? Using base alone is the most prudent, but having a hard time finding anything decent at the price that affords (have a family so 1 bedroom shack doesn’t cut it). Very frustrating time where interest rates have doubled yet home prices are still high. Assuming bank approves a loan with RSUs, is it still wise to basically use salary for all living expenses (almost all to housing payment) and only be able to invest and save with (volatile) RSU income? TC: 500k (250 base + 250 RSUs) Have 1m liquid: use up to half for down payment, save/invest the rest
Ignore future rsu, use current vested rsu at lowest value
Only use RSUs for the down payment.
RSU value can easily be cut in half or worse when you need it, if you have a lot of equity vesting then you can expect that will help with bigger projects/ repairs/ maintenance but you don't want to be stuck. If it doesnt vest before closing then you can always take a big chunk of your grant and put it into principal to pay your mortgage off faster / make it easier to refinance when rates fall in a few years.
Different banks have wildly different rules on using RSUs to qualify. Find a bank that a coworker recommends. All will apply a discount to your RSU income, for some lenders the discount will be huge and they will ask for a huge amount of paperwork and documentation. For how much to use? Just keep a sizable buffer (both cash on hand and TC) in case the stock goes down 50%.
No. RsU isn't a guaranteed income.
RSU is income, so assuming you work for an established company where stocks are actually worth something, I think it's ok to count future vestings with some discount (e.g. 30%) to allow for volatility. (Actual drop could be higher but will likely also result in more RSUs being awarded during down years, which will somewhat counterbalance.)
Snap has monthly vesting and stock is publicly traded so liquid.
Use RSU with expected 250 % growth, can't go wrong
Have to use RSUs, it’s half my income after all lol.
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Keep RSU for your regular expenses, because after buying the house and keeping up with the Jones you won’t have any salary left
Keeping up with Jones 😀